Dodgers sign 2014 draft picks Jeff Brigham (4th) & Trevor Oaks (7th)

The Dodgers have signed 12 of their 40 picks from the 2014 draft, with eight of those being selected within the top 10 rounds and thus counting against the bonus pool of $4,947,700. The team recently inked fourth-rounder Jeff Brigham and seventh-rounder Trevor Oaks.

Saving on bonus money is going to be key for the Dodgers draft, simply because Grant Holmes is going to command more than slot. The assumption is that the team is saving money at the tail-end of the bonus pool and that they’ll probably end up going close to five percent over the limit to get a deal with Holmes done. At the end of the day, I would be surprised if he’s able to pass up in excess of two million dollars to sign.

All money paid to picks in the first 10 rounds count toward the bonus pool of $4,947,700. Players selected from rounds 11-40 can be paid up to $100,000 without affecting the bonus pool, but whatever amount given over $100,000 counts against the bonus pool.

So what’s the penalty for going over?

Up to 4.999% over ($5,195,084) the team pays a 75% tax on the amount over. Up to 9.999% over ($5,442,469) the team pays the 75% tax on the amount over and loses next year’s first-round pick. Up to 14.999% over ($5,689,854) the team pays a 100% tax on the amount over and loses next year’s first-round and second-round picks. From 15% ($5,689,855) and up the team pays the 100% tax on the amount over and loses the first-round pick for the next two years.

So basically the Dodgers can use up to $5,195,084 on this year’s bonus pool draft picks without losing anything significant aside from money.

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